Strategic alliance aims to redefine first-time acquisitions through expert guidance, tech-powered tools, and a shared mission for responsible entrepreneurship

LOS ANGELES, CA / ACCESS Newswire / July 8, 2025 / Third Equity Partners, an M&A advisory firm dedicated to guiding first-time acquisition entrepreneurs through complex small business transactions, announced today a strategic partnership with Caprae Capital. The partnership is designed to help entrepreneurs navigating the search fund ecosystem or pursuing self-funded acquisitions complete transactions with greater confidence, discipline, and responsibility.

This collaboration combines Third Equity Partners' deep experience in deal process leadership, diligence management, and transaction structuring with Caprae Capital's strengths in supporting entrepreneurs through the end-to-end business acquisition journey - from launch to close and beyond. Together, the firms aim to help first-time buyers manage risk, protect operational continuity, and secure deals that create long-term value.

"Acquiring a small business for the first time can be an overwhelming process, especially in the traditional search fund ecosystem or when you're new to learning about the self-funded models," said Hereford Johnson, Founder of Third Equity Partners and an experienced entrepreneur across Traditional, Self-Funded, and Independent Sponsorship ETA models. "This partnership will help first-time buyers gain the strategic frameworks and support they need to execute transactions thoughtfully and set the stage for responsible ownership."

Driving Smarter Transactions Through Collaboration

Through this partnership, Caprae Capital will enhance its ability to support acquisition entrepreneurs with structured frameworks that reduce risk and improve deal outcomes.

"Hereford brings a rare combination of firsthand experience in both traditional search funds and self-funded acquisitions - a perspective few others in the ETA space possess," said Kevin Hong, Founder of Caprae Capital. "He's also an educator and a trusted voice in the search fund community. I was drawn to his strength of character and clarity of thought, and he's a natural fit for our growing team of searchers, operators, and advisors dedicated to helping first-time buyers succeed."

Caprae Capital now works with nearly 40 active searchers, and has recently expanded into sell-side engagements while collaborating with investment banks, family offices, and select search fund investors and funds who are joining its platform. As the company scales, strategic partnerships like this one have become a natural evolution, bringing in experienced operators and advisors who have personally navigated acquisitions. This alignment strengthens Caprae's core mission: to build durable infrastructure that empowers smarter, faster, and more resilient entrepreneurship through acquisition.

Even digitally, Caprae is seeing rapid traction. Its new platform, SaaSquatch, designed to automate and accelerate the small business buying process through lead generation and outreach, has already attracted over 2,000 signups and dozens of paying users actively pursuing acquisitions. This combination of tech, community, and strategic advisory creates a unique ecosystem where first-time buyers are no longer navigating alone - they're supported by an integrated support engine from deal sourcing to diligence and close.

For Third Equity Partners, the relationship provides access to Caprae's scalable technology platform, capital-raising capabilities, and third-party diligence network. This expanded toolkit enables the firm to streamline the diligence, transaction support, and closing processes - allowing it to serve first-time buyers more efficiently while preserving its client-first, people-focused approach.

A New Model for Responsible Acquisition

"This partnership is about more than simply aligning our services - it's about reimagining how first-time buyers approach small business acquisitions," said Johnson. "Together, we're building a platform that provides acquisition entrepreneurs with the discipline, guidance, and tools they need to succeed in an increasingly complex market. Many choose to exchange equity and governance control for collaboration, expertise, and support in certain search fund models, only to sometimes find a lack of capacity from investors in their time of need. Our goal at Third Equity is to be that missing support for entrepreneurs during their most vulnerable time of their search process - the LOI. We provide advisory services from battle-tested acquisition entrepreneurs who coach these first-time buyers, giving them the confidence to not just move quickly, but also realize their full range of options to cross the finish line - or to explore smarter alternatives outside of the traditional model."

About Third Equity Partners
Third Equity Partners supports first-time acquisition entrepreneurs by providing M&A advisory services focused on diligence, deal structuring, negotiation, and process leadership. The firm helps ensure transactions are executed responsibly, with an emphasis on operational continuity and long-term value creation.

Caprae Capital leverages AI-powered Search-as-a-Service tools to streamline the acquisition process for entrepreneurs and investors. With a focus on high-end solutions, including tech and AI due diligence, Caprae empowers clients to source, assess, and execute deals with precision and confidence.

SOURCE: Caprae Capital